Litecoin LTC price is currently 20% below 2017 high while trading in an ascending channel pattern since the September 2020 low. Potential exists for Litecoin to reach the all-time, but the intra-day charts indicate that the boost in the early part of the week is exhausted, and LTC price is poised to at least retrace some of the strong performance.
A Doji candlestick formation is formed when the open and close of a Crypto price are nearly identical. It creates a real body that is close to being a horizontal line. The connotation of the candlestick formation is that the market is in equilibrium and governed by indecision. It is a warning of a reversal pattern and occurs anywhere during a trend, but its value is limited within a narrow consolidation.
On the 12-hour LTC/USDT chart, Litecoin closed with a Doji candlestick pattern and slightly above the critical 78.6% retracement support level of the 2017-2018 bear market at a price of $334.86, augmenting the importance. The inclusion of the Doji candlestick pattern within this leg of the multi-month advance is a warning sign for traders and urges the need to consider the potential of a notable reversal in LiTC price. A trade below the Doji candlestick will activate the bearish outlook.
A support level will manifest at the ascending channel’s midline at a price of $297.00, followed by the April low at $207.10. A further unraveling of LTC price would target the channel’s lower trend line at a price of $197.80, representing a 40% in price and break in the trend of higher lows since October 2020.
Traders should also be aware that the weekly Relative Strength Index continues to show lower highs, producing a bearish momentum divergence versus price. Another warning sign, but at a different time interval.
Several cryptocurrencies price has managed to test their longstanding all-time highs in the last few weeks or months, such as SXP, and it is undoubtedly an outcome to be expected for LTC price in the coming days or weeks. There are no technical support levels to offer resistance, so a price rally continuation can not be steadfastly overruled. Potential price targets will need to be evaluated at the time of a new high to ensure real-time indicator values.
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